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EGB/Gilt - Holding onto gains

BONDS
  • EGBs and Bund remains underpinned this afternoon, as Govies continues to unwind from the multi year high yield.
  • Bund has so far found a near term top ahead of the 1% level.
  • Peripheral spread are a touch tighter, but mostly trading close to flat against the German 10yr.
  • The most notable spread was the Greek/Bund which widened by more than 14bps at one point of the session, but has reversed, and now sits just 3.3bps wider.
  • Gilts has traded inline with Germany, albeit just 0.7bp tighter sop far today.
  • Looking ahead, ECB's de Cos speaks at event in Gibraltar, but most of the attention is on the EU CPI release on Friday.
  • Gilt futures are up 0.23 today at 119.41 with 10y yields down -2.2bp at 1.817% and 2y yields down -3.2bp at 1.513%.
  • Bund futures are up 0.31 today at 155.20 with 10y Bund yields down -1.4bp at 0.821% and Schatz yields up 0.3bp at 0.142%.
  • BTP futures are up 0.42 today at 132.73 with 10y yields down -2.0bp at 2.555% and 2y yields up 0.9bp at 0.534%.
  • OAT futures are up 0.13 today at 147.61 with 10y yields up 0.4bp at 1.314% and 2y yields down -0.2bp at 0.162%.

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